How do you counter the current stagflation?
Increasing gold / natural resource stocks or just continue to farm ETFs as usual?
I dont expect the market to have as high annual returns as in the last decade, and am wondering how to approach that. What are your thoughts?
Having a cost of life indexed job and doing what I can to keep it, living below my means and keeping buying stocks/ETFs as they go down/stay at current prices. The stocks I’m buying today are not making me money today but will when the next run up of the market will happen. They won’t if I don’t buy them now.
What is your investing horizon?
I approach that with a long term view.
Expected returns vary in the opposite direction of valuations. When returns go down, valuations are usually high and then I sell naturally by rebalancing and sticking to my strategy.
If stocks go down, I will buy more also as a result of rebalacing. Because it means then the expected returns will increase. That’s actually great.
My horizon is decades.
The question for me is more: Continue with Stock Picking / Covered Call Writing or switching to World ETF.
Long term I wont be able to outperform the market anyway. But maybe in a stagflation environment it could make sense to go for stock picking value stocks / “cheap” growth stocks.
What kind of strategy are you following?
Guess you have a stock portfolio rather than ETFs?
I have a strategic allocation between stocks and bonds, implement it with diversified ETFs and index funds, and stick to it and rebalance when necessary.